CITY DELI SOLD; REVAMP COMING

Hillcrest eatery to be renamed Harvey Milk’s American Diner

City Delicatessen, a Hillcrest fixture for nearly three decades, is slated to have new owners, who plan to overhaul the eatery and rename it Harvey Milk’s American Diner.

The planned change in ownership was disclosed Tuesday to the deli’s two dozen employees, who were told that the prospective owners plan to keep them on at least through a transition period.

Commercial broker Michael Spilky of Location Matters confirmed the restaurant at University and Sixth avenues is in escrow, with a purchase price of $325,000, which includes a full liquor license and the furnishings. He estimated that it could be 45 to 60 days before the license formally transfers.

Tom Brown, who said he has owned a number of restaurants over the past 25 years, is partnering with Frank Lechner and Mike “Big Mike” Phillips to take over the New York-style Jewish deli. They have the formal blessing of the Harvey Milk Foundation, and once the sale closes escrow and a renovation is completed, Brown said they hope to debut the new restaurant by August or September.

“We’re not only memorializing an iconic figure who created all this opportunity for gay rights, but we’re creating a unique restaurant that gives back and has a connection to the (Harvey Milk) foundation to help support it,” said Brown, who has opened and subsequently sold restaurants in Arizona and Southern California, although none in San Diego County. “Part of our mission statement is that this will be a place to feed the soul of our community.”

The prospective owners have worked out a licensing agreement with the foundation that requires them to pay a quarterly fee tied to a percentage of the gross sales. The foundation carries on the work of Milk, the late San Francisco supervisor who achieved acclaim as the first openly gay man elected to public office. He was assassinated in 1978, along with then-San Francisco Mayor George Moscone.

The sale of City Deli, which has been in the works off and on for the past two years, is bittersweet for Michael Wright, who opened the eatery with partner Alan Bilmes in 1984, when Hillcrest was hardly the dining mecca it is today. Wright acknowledged that business at City Deli has suffered as the area experienced an explosive growth in restaurants in recent years, especially in the fast-casual category.

“I’m heartbroken, but we’re not leaving town,” said Wright. “It’s been 30 years, though, and we’re just ready to move on. We’ve been instrumental in making Hillcrest a vibrant place. There were only four other restaurants in the area when we came here, and now there are well over 160 food and beverage places.”

The 24 employees, about half of whom have been with the restaurant for 20 years or longer, have been told they will be retained while the restaurant remains City Deli. All of them will be considered during the hiring process for Harvey Milk’s American Diner, Brown said.

The nearly 4,800-square-foot restaurant will close for several days, so the interior can be updated to give it a more open connection to the outdoor patios, Brown said. The existing bakery operation will also be expanded. The renovation work will likely cost $200,000, he said.

Brown noted that celebrities supportive of the LGBT community, like Elton John, Cher, Ellen DeGeneres and Cyndi Lauper, have agreed to provide memorabilia. Milk’s nephew, Stuart Milk, has also agreed to lend the restaurant items from Milk’s collection.

“City Deli has been there 30 years, and in order to be successful, you have to change with the times and reinvent yourself,” Brown said. “Unfortunately, that’s been part of City Deli’s problem. It’s time to pass the baton and move forward.”

The planned menu will be heavy on classic American comfort food, from deli sandwiches and burgers to macaroni and cheese, pot roast, grilled pork chops and chicken fried steak. Healthful items like salads and vegetarian and gluten-free dishes will be on the menu as well, Brown said.

The plan to rename the restaurant after Milk marks yet another local tribute to the late politician. Last year, the San Diego City Council voted to rename the two-block road leading up to the San Diego LGBT Community Center in Hillcrest from Blaine Avenue to Harvey Milk Street.